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Some analysts say Europe is already too far behind in the race with Asian firms, at least with the current technology. Boston Consulting Group (BCG), for example, has estimated global battery cell production capacity will exceed demand by about 40 percent in 2021, exerting massive pressure on prices and making it hard for new entrants to make money black onyx cufflinks square uk sale. South Korea’s LG Chem (051910.KS) is already supplying some German carmakers with EV batteries made in Poland while Samsung SDI Co (006400.KS) and SK Innovation are planning factories in Hungary..
The announcement by the world’s biggest EV battery maker – China’s Contemporary Amperex Technology Ltd (CATL) (300750.SZ) – that it would build its first European plant in eastern Germany and has struck a deal with German carmaker BMW (BMWG.DE) has been welcomed by the government. But Merkel told business leaders it was “extremely important” Germany also develops its own battery cell capacity to secure the country’s role in the car industry. For years, German car bosses have been reluctant to push ahead with electric cars, instead focusing on diesel engines black onyx cufflinks square uk sale. But they now face a challenge to make combustion engines comply with tougher emissions rules introduced following the emissions cheating scandal that engulfed Volkswagen..
Despite BCG’s predictions of a glut, analysts at consultants McKinsey & Company and Germany’s Fraunhofer Institute say there will be room for European newcomers as demand is likely to outstrip supply when automakers ramp up EV production. German carmakers have warned, however, that jobs could disappear – because it takes less time to build electric cars and as positions shift overseas to foreign battery makers. Germany’s VDA auto industry association has said a ban on combustion engine-powered vehicles in 2030 would threaten 436,000 jobs at car companies and their suppliers black onyx cufflinks square uk sale.
“Battery cells are a key technology and an important part of the value chain. That’s why we want to locate this in Germany,” Hirte said. Recognizing the importance of a homegrown battery industry for jobs and profits, the European Commission launched its own European Battery Alliance (EBA) in 2017 but Sweden’s Northvolt is seen as the only serious contender to emerge so far. As part of Berlin’s push, Economy Minister Altmaier is talking to German and European companies as well as neighboring countries to try to join forces black onyx cufflinks square uk sale. He is coordinating his efforts with Brussels to resolve any state aid and antitrust issues..
“In a few years, Europe will have a competitive battery cell sector that can survive without state aid,” Altmaier said in September after meeting the EU’s Vice-President for Energy Union Maros Sefcovic, who has been the driving force behind the EBA. Altmaier is expected to announce more details of his battery cells plan during a two-day conference in Berlin starting on Nov black onyx cufflinks square uk sale. 12 that will be attended by Sefcovic. The billion euros earmarked for a German battery cells consortium would help establish a first factory, probably in western Germany, two sources familiar with the plans said..